High Quality Envisioned
Four-Star Hotel
A hotel developer with over 30 years of experience has explored the feasibility of a Four-Star Hotel in Livermore's Downtown Center. The only site the developer thinks is feasible is located on the east side of L Street between Veterans Way and Railroad Avenue, and importantly, contiguous to the L Street Garage and a large Veterans Park. If built, a Four-Star Hotel would be the highest quality hotel in the Tri-Valley, with approximately 130 rooms in a two- and three-story building.
After having recently conducted a financial assessment of the project, the hotel developer determined that due to increased construction costs and unstable room occupancy in the hotel industry, any hotel would show a financial loss in the near future. Thus, in order for Livermore to secure a quality hotel, it is critical that any funding gap be addressed for an appropriate number of years. The goal is to present to the City of Livermore and Livermore Area Recreation and Park District (LARPD) a funding structure that would address the hotel's cash shortages, and those of projects near or related to the hotel, without negatively impacting the finances of the City and LARPD. This could be done with the establishment of an Enhanced Infrastructure Financing District (EIFD), the details of which are presented in an attachment to this Executive Summary. Establishment of an EIFD will not increase taxes.